# pToken

### pToken

When borrowers deposit an asset on Forlend, under the hood, he is contributing the asset to a liquidity pool (or a “market”) that is available for other users to borrow, and they share in the interest that borrowers pay back to the pool.

**Each supported asset** has its own interest rate market with different rates (floating rate, adjusted for each block based on supply/demand). When users (or applications) supply an asset, interest begins to accrue. Interest accrues every block, and users can withdraw their principal plus interest anytime.

When users supply assets, they receive `pTokens` from Forlend in exchange at a certain exchange rate. `pTokens` can be redeemed for their underlying assets (principal plus accrued interest) at any time at a certain exchange rate.

**pToken Exchange Rate:** 

{% hint style="info" %}
exchangeRate = (totalCash + totalBorrows - totalReserves) / totalSupply\
\
`totalCash`: asset deposited yet not borrowed in the "market" (liquidity pool)

`totalBorrows`: assets to be repaid to the "market" (liquidity pool) (principal + interest)

`totalReserves`: total reserve (part of the interest paid back by the borrower is taken as reserve)

`totalSupply`: total amount of assets deposited in the "market" (liquidity pool)
{% endhint %}

### pToken Address List

{% content-ref url="../contract-address" %}
[contract-address](https://helloforlend.gitbook.io/welcome-to-forlend/protocol-basics/contract-address)
{% endcontent-ref %}